Jason Bourne wrote:Romney has experience in analyzing businesses that may be good investments as well as working on companies that may require turn around work. This requires a skill set of understanding business, business finance, management of businesses and growing businesses. All of these things are elements of business growth and thus job creation. It also takes into account an understanding of at least basis economic forces and issue because risk is a large element of such business activity and economics impacts risk assessments.
I have a client that is a venture capital company. They have a knack for picking good businesses that with an infusion of capital can grow to the next level. These people are very astute business men and are able to engage with the current management of companies they invest in in such a way to grow the company which, guess what, results in more jobs in many cases. This is exactly what Bain did.
I can tell from how your phrased this that you agree that it’s hard to measure how many net-jobs Romney’s venture capitalism created. The emergence of Staples resulted in x-thousand new jobs at Staples, but it also resulted in y-thousand jobs that were lost at other companies that lost business to Staples. Since Staples is more efficient than the companies it replaced, the y-thousand jobs Staples destroyed is probably a bigger number than the x-thousand jobs Staples created. Certainly overall profits increased and overall capital was better allocated, but were overall jobs created? Probably not.
In no way do I mean to critique Romney’s management skills. These skills are exactly why I think he'd do a great job as "CEO" of America, if he were hired as CEO and the board of directors gave him the correct goals and authority to fix Medicare, Medicaid, defense, the tax code, Social Security, and general government waste.
But what we’re talking about here is what Romney would do to lower the unemployment rate if he were elected president. Does he know how to do this? There is no reason to believe so.